6 Not-So-Obvious Signs of Insurance Bad Faith

Posted July 20, 2017

According to Oklahoma law, insurance bad faith is “an independent tort upon which an insurer could be held liable for both compensatory and punitive damages for the delay or denial in payment of a claim not reasonably in dispute.” But how can you tell if an insurance company is acting in bad faith and is not just adhering to the strict letter of the law? Most consumers are not familiar with most of Oklahoma’s insurance laws, which it can make it difficult for them to spot bad faith insurance dealings, much less fight them. However, an Oklahoma insurance bad faith attorney is, and they can help. Our lawyers at The Bennett Law Firm suggest keeping an eye out for the six not-so-obvious signs of insurance bad faith:

1. Unreasonable Demands for Documentation.

If your insurance company makes unusual to unreasonable demands for documentation—such as unwarranted proof of income from the past 10 years or medical records from when you were a child—chances are that they are just trying to avoid making a payment.

2. Lack of Communication.

Insurance companies have a duty to keep their insured up to date on everything that is happening with their claim. If your insurance company is hard to reach or if they fail to provide you with timely updates, chances are that they are trying to hide something from you.

3. Too Quick to Make a Settlement Offer.

If your insurance company offers a low settlement right off the bat, it is likely that they know that your claim is worth much more and so do not want to adequately investigate it for fear of turning up information that could warrant a much larger settlement.

4. Pressure to Accept a Low Offer.

If you turn down the agency’s low offer and they counter with threats that that is all you can expect from your particular claim, be wary. At about this time you should seek the help of a knowledgeable insurance bad faith lawyer who can uncover the true value of your claim.

5. Changes Made to Your Policy Without Your Notice.

If the insurance policy you signed up for says one thing, but the one that the insurance company has says another, the company is guilty of bad faith. An insurance company cannot revise your policy without your knowledge or consent, period. Their attempt to do so proves that they are trying to pull one over on you, as most people will take what the insurance company says at face value and assume the mistake was on them.

6. Policy Cancellation.

Some insurance companies will outright cancel an insured’s policy upon receiving a claim. Though this is a fairly blatant sign of bad faith, most claimants will not recognize it and just assume that the company had other just cause to cancel the policy. This is not the case. An insurance company cannot cancel a policy simply because they do not want to pay a claim; if they do, hire a lawyer who can prove bad faith and ensure that you are compensated for your troubles.

An Oklahoma Insurance Bad Faith Attorney Can Protect Your Rights

If you recognize any of these not-so-obvious signs of insurance bad faith, reach out to the insurance bad faith lawyers at The Bennett Law Firm. Our legal team can help you identify and prove instances of bad faith and ensure that you are fairly compensated for your hassle. Call our office at 405-272-0303, or contact us online, to schedule your free consultation today.